OV E RV I E W
The evolution of the third party management company sector: Conflicted David Morrissey offers his unique personal perspective on the evolution of the third party management company sector
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hen I joined DMS almost five years ago I was backing my instinct that the third-party management company sector was one that investors, and hence the industry, needed. I felt this so strongly that I left a company that I had enjoyed 18 successful years with and where I still count some of my best friends – SEI. I firmly believe that I would not have left for any other opportunity. As such, SEI is a logical place to begin examining the evolution of management companies and where they should sit in the wider fund provider infrastructure. You see, SEI has both a European depositary and a European proprietary management company. FUND DOMICILE OPPORTUNITIES IN FOCUS | Aug 2021
SEI took a decision whilst I was still there – that we all thought logical at the time – to use our management company to oversee the SEI proprietary funds and not to offer it as a third-party management company. The reason we took this decision is that we clearly saw that SEI would be conflicted were they to act as both third-party management company and as the depositary. Conflicted… I was certain that, when it came to investor protection, conflict within the overall governance & oversight framework would not be tolerated by regulators or industry. In essence the third-party management company would become a key www.hedgeweek.com | 11
